** The Illinois Economic Development for a Growing Economy (EDGE) Tax Credit Program expired on 4/30/17. Legislation discussion continues regarding a potential extension of the existing program, as well as the possibility of a new program to replace EDGE.  Companies actively considering investments in Illinois will want to track related developments closely.  Please contact our Chicago office for additional information: 312-924-2490.
TAX CREDITS

Economic Development for a Growing Economy (EDGE): Provides non-refundable annual tax credits against corporate income taxes over a period of up to 10 years. EDGE credits are equal to a percentage of the new income tax withholdings generated by new job creation. To qualify, a company must make an investment of at least $5 million in capital improvements and create a minimum of 25 new full-time jobs, or make an investment of $2.5 million and create 50 jobs. Businesses with fewer than 100 employees must invest at least $1 million and create a minimum of 5 new full- time jobs. 

High Impact Business (HIB): To stimulate large-scale economic development projects outside of Enterprise Zone locations, the HIB program offers investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, and a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. Qualifying businesses must make a minimum capital investment of $12 million and create at least 500 full-time jobs.

SPECIAL ZONING

Enterprise Zone Program: Businesses locating in one of state’s 104 dedicated Enterprise Zones may qualify for certain incentives including a sales tax exemption on building materials, an investment tax credit of .5% of qualified property, a state utility tax exemption on gas, electricity and telecommunication, as well as other incentives. 

GRANTS

Large Business Development Program (LBDP): Discretionary grants are available for major expansion or relocation projects that create and/or retain a large number of jobs. The funds may be used for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment.  Businesses relocating to Illinois from out-of-state must create at least 500 jobs to qualify for the program. This program also provides long term fixed-rate low-interest loans.  (Note:  the LBDP program has not received a funding allocation for the current fiscal year)

JOB TRAINING

Employer Training Investment Program (ETIP):  The state can provide reimbursable grants of up to $500 for each new full-time job created.  (Note:  the ETIP program has not received a funding allocation for the current fiscal year)

TAX EXEMPTIONS

Property tax exemptions: All personal property of businesses; inventories, machinery, and intangibles are exempt.

Last reviewed: May 2017


 
BIGGINS LACY SHAPIRO & COMPANY
 
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490
CALIFORNIA
1255 Treat Boulevard, Suite 300
Walnut Creek, CA 94597
(925) 239-1711